Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Composition of income tax expense (benefit) included in consolidated statement of income and shareholders' equity [Table Text Block]

The following table presents the components of income tax expense (benefit) included in the amounts reported in the Company’s consolidated financial statements:

(for the year ended December 31, in millions)	2022		2021		2020
Composition of income tax expense included in the consolidated statement of income
Current expense:
Federal	$	636	$	659	$	532
Foreign	97		67		35
State	8		6		4
Total current tax expense	741		732		571
Deferred expense (benefit):
Federal	(186)		62		(29)
Foreign	(43)		2		(2)
Total deferred tax expense (benefit)	(229)		64		(31)
Total income tax expense included in the consolidated  statement of income	512		796		540
Composition of income tax expense (benefit) included  in shareholders’ equity
Expense (benefit) relating to changes in the unrealized gain (loss) on investments, unrealized loss on foreign exchange and other items in other comprehensive income (loss)	(2,002)		(362)		490
Total income tax expense (benefit) included in the  consolidated financial statements	$	(1,490)	$	434	$	1,030

Effective tax rate [Table Text Block]

The following is a reconciliation of income tax expense at the U.S. federal statutory income tax rate to the income tax expense reported in the Company’s consolidated statement of income:

(for the year ended December 31, in millions)	2022			2021			2020
Income before income taxes
U.S.	$	3,101		$	4,107		$	3,095
Foreign	253			351			142
Total income before income taxes	3,354			4,458			3,237
Effective tax rate
Statutory tax rate	21		%	21		%	21		%
Expected federal income tax expense	704			936			680
Tax effect of:
Nontaxable investment income	(149)			(147)			(147)
Audit reserve	(40)			1			15
Other, net	(3)			6			(8)
Total income tax expense	$	512		$	796		$	540
Effective tax rate	15		%	18		%	17		%

Deferred tax assets and liabilities [Table Text Block]

The net deferred tax asset (liability) comprises the tax effects of temporary differences related to the following assets and liabilities:

(at December 31, in millions)	2022		2021
Deferred tax assets
Investments	$	999	$	—
Claims and claim adjustment expense reserves	660		601
Unearned premium reserves	673		603
Net operating losses	96		101
Other	262		187
Total gross deferred tax assets	2,690		1,492
Less: valuation allowance	27		23
Adjusted gross deferred tax assets	2,663		1,469
Deferred tax liabilities
Claims and claim adjustment expense reserve discounting (transition rule)	58		77
Deferred acquisition costs	539		479
Investments	—		940
Intangibles	65		59
Depreciation	105		112
Other	19		91
Total gross deferred tax liabilities	786		1,758
Net deferred tax asset (liability)	$	1,877	$	(289)

Net operating loss amounts by jurisdiction and year of expiration [Table Text Block]

The NOL amounts by jurisdiction and year of expiration are as follows:

(in millions)	Amount		Year of  expiration
United States	$	2	2035 - 2036
Canada	$	46	2035 - 2042
Republic of Ireland	$	120	None
United Kingdom	$	257	None

Reconciliation of unrecognized tax benefits [Table Text Block]

The following is a reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2022 and 2021:

(in millions)	2022		2021
Balance at January 1	$	48	$	49
Additions for tax positions of prior years	3		2
Reductions for tax positions of prior years	(44)		(3)
Additions based on tax positions related to current year	2		—
Expiration of statute of limitations	—		—
Balance at December 31	$	9	$	48